The government has put a cut on profit rates for its national savings schemes. After new rates, the profit on savings certificate is down by 50 basis points to 6.50 %.
As per details, this year National Savings, the largest investment and financial institution in Pakistan due to ongoing pandemic have slashed profit rates on its national schemes that peaked last year with 12%. It reduced rates in January and April. The new rates announced on June 2 come as a third cut of the year.
Under the new rates, if you put Rs100,000 in a Savings Account, you will make a profit of Rs6,500 per year. Pensioners Benefits Account and Behbood Savings certificates to offer 9.84% annual profit. The State Bank of Pakistan has also cut its monetary policy rate by 5.25% in the last three months, bringing the benchmark interest rates down to 8%.
After new cuts, the profit offered by various schemes under the National Savings umbrella is expected to go down by 0.5% to 0.9%. This is the range of the cut, not the actual rate after the cut. Profit rates for all the schemes can be found on the National Savings website. The rate of return on Special Savings Certificates decreased by 90 basis points to 7.10%.
